Understanding the Standard Industrial Classification (SIC) System

SIC (Standard Industrial Classification) is a system used to classify businesses into specific industries based on the type of goods or services they produce. It is commonly used by governments, statistical agencies, and other organizations to collect and analyze data about economic activity.

The SIC system was developed by the United Nations Statistics Division and is widely used around the world. It provides a standardized way of categorizing businesses into industries, allowing for comparable data across different countries and regions.

In the United States, the SIC system has been replaced by the North American Industry Classification System (NAICS), which is similar but has some differences in terms of the categories and codes used. However, many organizations still use the SIC system, especially for historical data or international comparisons.